Iranian Government Considers Policymaking for Cryptocurrencies

Last Modified:12 May 2020 14:40:48
Iranian Government Considers Policymaking for Cryptocurrencies

Cryptocurrencies have spread to every corner of the world and has made a lot of noise in almost any country. Asian and Middle Eastern markets have not been an exception, too. Iran has one of the largest cryptocurrency markets in the Middle East, and it seems that the development of this market had an increasing trend in 2018.

In mid-2018, Central Bank of Iran forbade all financial transactions in the field of cryptocurrencies. This had more to do with anti-money laundering laws of the country and the high number of scams and hacks in the field of Cryptocurrencies in Iran.

Yet, the prohibition act in purchasing, selling, and making financial transactions from the Central Bank of Iran was nullified a couple of months later, and currently, the activity of cryptocurrency market has relative constraints in Iran.

Recently, Mehr News Agency has reported that the Iranian government will soon consider the process of policymaking and regulating cryptocurrencies there. Like many European countries, it might lead to establishing constraining laws in purchasing and selling cryptocurrencies; however, not much information has been published so far in this regard.

Secretary of the Supreme Council of Cyberspace stated in an interview that currently cryptocurrencies have turned into one of the largest financial markets in Iran, and due to the increasing volume of financial transactions in this field, the need for regulation is felt more than ever.

Earlier, Deputy Minister of Communications of Iran also stated that this ministry intends to establish rules and regulations in the field of cryptocurrency exchanges and cryptocurrency miners in Iran. In fact, the government of Iran intended to establish some rules to allow cryptocurrency miners, like industrial occupations, to enjoy legal support.

Yet, the process of policymaking in the field of cryptocurrencies in Iran and in the world is very complex, due to the high variety of these currencies and the wide range of their activities.

It seems that the growing market of cryptocurrencies in the Middle East will lead to policymaking from the governments in this region; although, we can’t say exactly what the effect of this policymaking will be on cryptocurrency market.